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TMI BlogSecurities and Exchange Board of India (Disclosure and Investor Protection) Guidelines, 2000Guidelines for offering securities in public issues through the Stock Exchange mechanism.X X X X Extracts X X X X X X X X Extracts X X X X ..... b: Securities and Exchange Board of India (Disclosure and Investor Protection) Guidelines, 2000Guidelines for offering securities in public issues through the Stock Exchange mechanism. The SEBI Board had considered the proposal of offering securities in public issues through the stock exchange mechanism and after considering the advantages of the system, approved the proposal. Accordingly, the Guidelines for offering securities in public issues on - line through the stock exchange mechanism have been framed. The Guidelines are contained in a new chapter XI A (inserted by this circular) after the existing Chapter XI of the SEBI (Disclosure and Investor Protection) Guidelines, 2000. Chapter XI A shall be applicable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the company and stock exchange(s) inter se. The agreement may also provide for a dispute resolution mechanism between the company and the stock exchange. 11A.3 Appointment of Brokers 11A.3-1 The stock exchange, shall appoint brokers of the exchange, who are registered with SEBI, for the purpose of accepting applications and placing orders with the company. 11A.3-2 For the purposes of this Chapter, the brokers, so appointed accepting applications and application monies, shall be considered as collection centres . 11A.3-3 The broker/s so appointed, shall collect the money from his/their client for every order placed by him/them and in case the client fails to pay for shares allocated as per the Guidel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther intermediaries namely Lead Managers to the issue and Registrars to the Issue shall be disclosed in the prospectus and application form. 11A.7 Mode of operation 11A.7-1 The company shall, after filing the offer document with ROC and before opening of the issue, make an issue advertisement in one English and one Hindi daily with nationwide circulation, and one regional daily with wide circulation at the place where the registered office of the issuer company is situated. 11A.7-2 The advertisement shall contain the salient features of the offer document as specified in Form 2A of the Companies (Central Government s) General Rules and Forms, 1956. The advertisement in addition to other required information, sha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ents and enter details including the name, address, telephone number and category of the applicant, the number of shares applied for, beneficiary ID, DP code etc. and give an order number/order confirmation slip to the applicant. 11A.7-7 The applicant may withdraw applications in terms of the Companies Act, 1956. 11A.7-8 The broker may collect an amount to the extent of 100% of the application money as margin money from the clients before he places an order on their behalf. 11A.7-9 The broker shall open a separate bank account [Escrow Account] with the clearing house bank for primary market issues and the amount collected by the broker from his clients as margin money shall be deposited in this account. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t already paid by the applicant as margin money shall be adjusted towards the total allocation money payable. The broker shall, thereafter, hand over the application forms of the successful applicants who have paid the application money, to the exchange, which shall submit the same to the Registrar to Issue/company for their records. 11A.7-14 The broker shall refund the margin money collected earlier, within 3 days of receipt of basis of allocation, to the applicants who did not receive allocation. 11A.7-15 The brokers shall give details of the amount received from each client and the names of clients who have not paid the application money to the exchange. The brokers shall also give soft copy of this data to the exchange ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ficates to the investors or, instruct the depository to credit the depository account of each investor, as the case may be. 11A.7-21 Allotment of securities shall be made not later than 15 days from the closure of the issue failing which interest at the rate of 15% shall be paid to the investors. 11A.7-22 In cases of applicants who have applied directly or by post to the Registrar to the issue, and have not received allocation, the Registrar to the issue shall arrange to refund the application monies paid by them within the time prescribed. 11A.7-23 The brokers and other intermediaries engaged in the process of offering shares through the on-line system shall maintain the following records for a period of 5 years ..... X X X X Extracts X X X X X X X X Extracts X X X X
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